European put and european call on the same asset

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Reference no: EM131918067

1. Apply put-call parity to compare the ν, Γ, ρ and Θ of a European put and a European call on the same asset with the same strike and expiration. Note that this holds without assuming the log-normal model for the asset, that is, the Black-Scholes formula for the options.

2. Describe how you would do a two sample hypothesis test. Select the variables (dependent and independent ones) and briefly set up the test. Include any ethical issues you might run across as you begin to collect your data. (500 word minimum.

Reference no: EM131918067

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